HFF arranges $200 million financing for 520 Fifth Avenue in Manhattan
NEW YORK, NY – July 10, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged $200 million in pre-development financing for 520 Fifth Avenue, a to-be-built, mixed-use property in Manhattan.
HFF worked on behalf of the owner, a joint venture between Ceruzzi Holdings LLC (Ceruzzi) and SMI USA, to secure the floating-rate loan through Mack Real Estate Credit Strategies, L.P. (Mack). HFF previously brokered the sale of the property to the partnership and secured acquisition financing on its behalf. The proceeds of this loan will be used to repay existing debt, conclude design and move forward with pre-development work.
Ceruzzi’s partner, Tom Tao of SMI USA, said, “Mack presented us with exceptional terms and an extremely attractive rate. Mack has performed incredibly well, and we closed the deal less than a month from when we agreed to terms."
President and CEO of Ceruzzi Holdings LLC, Lou Ceruzzi, added, “This transaction was remarkably executed. The timeliness and diligent focus of all parties involved came together to solidify the deal, allowing us to refinance this excellent asset and move along the process on an expedited timeline.”
Situated at the southwest corner of 43rd Street and Fifth Avenue, the development will comprise approximately 425,000 square feet featuring more than 33,000 square feet of irreplaceable Fifth Avenue retail. The remaining square footage will feature luxury condominiums and a five-star luxury hotel. 520 Fifth Avenue is a 10,625-square-foot site with 85 feet of prime frontage along Fifth Avenue that will provide dramatic skyline views once complete. Ground breaking of the vertical development will begin in 2018.
HFF’s debt placement team was led by managing director Christopher Peck and senior managing director David Nackoul.
“We were privileged to advise best-in-class sponsors Ceruzzi and SMI USA on this transaction,” Peck said. “We look forward to watching the project enhance the Manhattan skyline and applaud Mack for fantastic execution.”
About Ceruzzi Holdings LLC
Ceruzzi Holdings LLC (Ceruzzi) is a New York City-based, full-service company, which develops, acquires and operates a diversified portfolio of mainly real estate properties. Ceruzzi leverages its 25+ year track record of acquisition, development and structuring to create unique opportunities that deliver outsized returns. Recent Ceruzzi projects in New York City include the acquisition of the majority position of land beneath the Lipstick Building and 138 East 50th Street, a Cesar Pelli designed luxury condominium project. The company’s real estate professionals specialize in numerous disciplines, including construction, entitlements, leasing, marketing, management and finance.
About SMI USA
SMI USA, the U.S. subsidiary of Shanghai Municipal Investment, is a full-service real estate development, investment and management firm based in New York. Since 2014, SMI USA has been actively engaging and executing deals in New York and plans to make a lasting impression on the city’s landscape. The company’s extensive experience is highlighted by the recent completion of the biggest building in the world, Shanghai Tower. This project, coupled with other first-class developments, allows SMI USA to ensure its partners of its storied success in the industry. SMI USA creates value through efficient vertical integration and fine-tuned processes. The company’s investment focus on New York City represents an established and dynamic market in which SMI USA leverages its expertise to be at the forefront of the competition. For more information, visit smiusa-co.com.
About Mack Real Estate Credit Strategies, L.P.
Mack Real Estate Credit Strategies, L.P., the Mack real estate credit business, was established to be a one-stop shop for borrowers with transitional assets, in particular to provide capital for deals that traditional banks are less likely to finance due to increased regulation, or complexity and execution risk that are better suited to an integrated real estate firm. MRECS focuses on properties in need of flexible capital and sponsors seeking an experienced, sophisticated real estate lending partner.
Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.